Pacer Lunt Large Cap Alternator ETF (ALTL)

Overview

The Pacer Lunt Large Cap Alternator ETF (ALTL) aims to provide capital appreciation by strategically alternating between growth and value equity styles based on economic indicators. The ETF uses a rules-based approach to tilt toward growth or value stocks within the large-cap space based on relative strength.

Reputation and Reliability

Pacer ETFs is known for its rules-based, index-tracking ETFs with a focus on cash flow and dividend strategies.

Management Expertise

The management team at Pacer ETFs has experience in developing and managing various index-based investment products.

Goal

To provide capital appreciation by strategically alternating between growth and value equity styles.

Investment Approach and Strategy

Strategy: The ETF does not track a specific broad market index but rather follows a proprietary methodology to rotate between growth and value styles based on economic indicators.

Composition The ETF primarily holds large-cap U.S. equities, with allocations shifting between growth and value stocks based on the underlying index's methodology.

Market Share: Data not readily available to calculate the exact market share of ALTL within its specific strategy niche.

Total Net Assets (AUM): 11761422

Key Competitors

• IVW
• IVE
• VUG
• VTV

Competitive Landscape

The competitive landscape includes broad-based growth and value ETFs. ALTL differentiates itself with its dynamic switching strategy based on economic indicators, offering a potentially advantageous approach compared to static growth or value tilts, but also introduces complexity and reliance on the model's effectiveness.

Historical Performance: Historical performance data should be sourced from financial data providers for various periods (e.g., 1-year, 3-year, 5-year, 10-year).

Benchmark Comparison: A suitable benchmark would be a blend of growth and value indices, or a dynamic allocation index that mimics the ETF's strategy.

Expense Ratio: 0.75

Average Trading Volume

The average daily trading volume varies but is generally moderate, indicating sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread also varies with market conditions but is generally reasonable, reflecting adequate liquidity.

Market Environment Factors

Economic growth, interest rates, and inflation expectations can significantly impact the relative performance of growth and value stocks and, consequently, ALTL's strategy.

Growth Trajectory

The ETF's growth trajectory depends on its ability to effectively switch between growth and value styles and attract investors seeking a dynamic allocation approach. Changes will be reflected in holdings reports.

Competitive Edge

ALTL's competitive edge lies in its rules-based dynamic allocation strategy, offering a systematic approach to rotating between growth and value stocks. The fund attempts to capitalize on macroeconomic trends to improve returns and reduce downside risk. This approach distinguishes it from static growth or value ETFs, however the reliance on the alternator rule can be a double-edged sword. Its advantage is its unique and consistent approach.

Volatility

Volatility can be assessed by analyzing the ETF's standard deviation of returns over different periods.

Market Risk

Market risk is inherent in the ETF's exposure to U.S. equities, particularly the large-cap segment, and its reliance on the effectiveness of its switching strategy.

Ideal Investor Profile

The ideal investor is one who understands and believes in the effectiveness of a dynamic allocation strategy between growth and value stocks. Investors seeking potentially higher returns by tactical style shifts.

Market Risk

ALTL is suitable for investors who can tolerate moderate risk and are comfortable with an active investment strategy that may involve higher turnover.

The Pacer Lunt Large Cap Alternator ETF (ALTL) offers a unique approach to large-cap investing by dynamically rotating between growth and value styles based on economic indicators. While this strategy has the potential to outperform static style allocations, it also introduces complexity and relies on the model's effectiveness. The ETF is suitable for investors who understand and are comfortable with the active management and its associated risks. Investors should carefully consider the ETF's methodology and historical performance before investing.

Data Sources:

• Pacer ETFs Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.